As Nigeria’s President Bola Tinubu reaches the midpoint of his administration on May 29, 2025, the country’s oil and gas sector, a pillar of the nation’s economy, finds itself at a transformative crossroads. Guided by bold reforms, renewed investments, and persistent structural challenges, the sector is undergoing significant change.
In his first week in office, Tinubu eliminated fuel subsidies, an economically applauded move that nevertheless sparked public backlash due to rising living costs. Under his leadership, Nigeria also accelerated the implementation of the Petroleum Industry Act, pushing forward the restructuring of the Nigerian National Petroleum Company (NNPC) and ramping up local refining and gas development.
Crude oil production has shown signs of recovery, averaging 1.56 million barrels per day in 2024 (including condensate), buoyed by improved security and anti-theft initiatives. The administration has set an ambitious target of 3 million bpd by December 2025 to enhance fiscal stability and reassert Nigeria’s dominance in Africa’s energy landscape.
Progress in gas development has also been notable. Domestic gas output increased, while major pipeline projects such as the Ajaokuta-Kaduna-Kano (AKK) and the Obiafu-Obrikom-Oben (OB3) pipelines neared completion, key milestones toward boosting national energy supply and industrialization.
Refinery upgrades in Port Harcourt and Warri marked forward steps toward reducing fuel imports, although both facilities remain only partially operational. Meanwhile, investment inflows have been robust, with Shell committing $5 billion to the Bonga North deepwater project and Nigerian firms expanding through successful divestments by international oil companies.
Policy efforts to stabilize fuel supply, curb smuggling, and trade oil in naira—especially via the Dangote Refinery—are reinforcing local capacity and shoring up the national currency. At the same time, Tinubu’s administration is investing in community engagement and energy-focused education, aiming to build local trust and develop a skilled domestic workforce to support the industry’s long-term sustainability.